Buying your first property will be one of the most significant financial moves you’ve ever made. Not only will this put you in debt for the next twenty-five years in most cases, but it also costs a lot of money to make a purchase in the first place. Many young people underestimate all the fees involved, which is why I’ve decided to take some time out of my schedule this morning and write this short post. Hopefully, after you’ve read through all the information below, you’ll have a much clearer understanding of how much money you need to save in advance before making your offer. Depending on the size, value and location of your desired property, this could be somewhere in the range of £10,000 to £30,000.
Of course, so long as you prepare yourself for this expense, you won’t encounter any issues, but many people do forget all the little extras you have to pay for. With that in mind, take a moment or two to read through all the points under this paragraph. Once you’ve done that, get yourself a pen and paper and start working out exactly how much money you’re going to need.
In modern times, many people still choose to buy and sell properties with the help of estate agencies. While that does make the process much simpler, they often charge a rather hefty commission of around 1% to 5%, so you need to factor this in when compiling your budget. Alternatively, you could eliminate this by selling the property yourself. Through the use of social media websites and online listing services, you could remove the need for an estate agent altogether, and that’s guaranteed to save you a lot of money.
You should never buy a new property without first paying for a couple of surveys from reputable specialists. All property solicitors worth their salt will tell you that. Just to give you some idea of how much this can cost, I recently paid for a survey on a three bedroom terrace house in my local town, and it set me back around £1,500. However, it was sensible to pay for that, as we discovered some subsidence problems that meant the purchase became unviable.
Unless you have some official qualifications in law, it’s almost impossible for you to process the transaction yourself, which is why everyone uses specialist solicitors. Some will charge you a small fee while others may ask for a commission. Either way, this is going to cost you a lot of money so calling round all the different providers in your area for quotes ahead of time is a good idea. Of course, you have little choice in the matter anyway, and sometimes we find the cheapest option isn’t always the best. You need to find a solicitor capable of pushing the purchase through quickly and that usually costs a bit more.
So, having read through that information, you should be better prepared for the road ahead. I wish you the best of luck and hope you manage to buy the property of your dreams sometime over the next 12 months.
In answering the question posed in the title of this post; yes first time buyers are underestimating the cost of buying a home. Still, hopefully I’ve helped to reverse that fact.